Problem:
After the Enron, WorldCom, Arthur Anderson fiascos, and the effects that such major failures continue to have on the public trust everywhere, many advocate for an expanded role of the government in taming and controlling irresponsible management behavior. As an expert economist, members of Congress have asked you, speaking strictly from an economic and/or financial viewpoint (and not a political/social one) should the government have an expanded role? Why or why not? In your response, make sure you address the role of the SEC and other regulatory/enforcement agencies.